FRISCO, TX, July 30, 2025 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE; NYSE Texas: CRK) today reported financial and operating results for the quarter ended June 30, 2025.

Highlights of 2025 's Second Quarter

  • Higher natural gas prices in the second quarter drove improved financial results in the quarter.
    • Natural gas and oil sales, including realized hedging gains, were $344 million for the quarter.
    • Operating cash flow was $210 million or $0.71 per diluted share.
    • Adjusted EBITDAX for the quarter was $260 million.
    • Adjusted net income was $40.0 million or $0.13 per diluted share for the quarter.
  • Five Western Haynesville wells turned to sales in the second quarter.
    • These wells had an average lateral length of 10,897 feet and an average per well initial production rate of 36 MMcf per day.
    • The five wells were drilled and completed at an average per well cost of $2,647 per completed lateral foot.
  • Comstock has turned 21 wells to sales to date in 2025 in its Legacy Haynesville area with an average lateral length of 11,803 feet and a per well initial production rate of 25 MMcf per day.

Financial Results for the Three Months Ended June 30, 2025

During the second quarter of 2025, Comstock realized $3.02 per Mcf before hedging and $3.06 per Mcf after hedging for its natural gas production of 112 Bcf. As a result, Comstock's natural gas and oil sales in the second quarter of 2025 increased to $344.3 million (including realized hedging gains of $4.3 million). Operating cash flow (excluding changes in working capital) generated in the second quarter of 2025 was $209.6 million, and net income for the second quarter was $130.7 million or $0.44 per diluted share. The net income in the quarter included a pre-tax $231.6 million unrealized gain on hedging contracts held for price risk management resulting from the change in future natural gas prices since the first quarter of 2025. Excluding this item, adjusted net income for the second quarter of 2025 was $40.0 million, or $0.13 per diluted share.

Comstock's production cost per Mcfe in the second quarter averaged $0.80 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.28 for lease operating costs, $0.09 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 73% in the second quarter of 2025 and 74% after hedging.

Financial Results for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, Comstock realized $3.31 per Mcf before hedging and $3.29 per Mcf after hedging for its natural gas production of 227 Bcf. Natural gas and oil sales for the six months ended June 30, 2025 totaled $749.3 million (including realized hedging losses of $3.7 million). Operating cash flow (excluding changes in working capital) generated during the first six months of 2025 was $448.6 million, and net income was $15.3 million or $0.05 per diluted share. Net income during the first six months of 2025 included a pre-tax $90.8 million unrealized loss on hedging contracts held for risk management. Excluding this item and exploration expense, adjusted net income for the six months ended June 30, 2025 was $93.9 million or $0.32 per diluted share.

Comstock's production cost per Mcfe during the six months ended June 30, 2025 averaged $0.82 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.29 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged and hedged operating margin was 75% during the first six months of 2025.

Drilling Results

Comstock drilled twelve (10.6 net) operated horizontal Haynesville/Bossier shale wells in the second quarter of 2025, which had an average lateral length of 10,388 feet. Comstock turned thirteen (12.0 net) operated wells to sales in the second quarter of 2025.

Since its last operational update in May 2025, Comstock has turned twelve (11.0 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 29 MMcf per day. The completed lateral length of these wells averaged 10,939 feet. Included in the wells turned to sales were four more successful Western Haynesville wells:







Well

Vertical
Depth
(feet)



Completed
Lateral (feet) 		Initial
Production
Rate (MMcf
per day)
Menn PB #1 16,262 10,926 38
Jennings Loehr #1 15,582 12,106 34
Jennings FSRA #1 14,760 12,045 28
Bell Meyer #1 18,762 9,100 41

Other

Comstock and NextEra Energy Resources, LLC, a unit of NextEra Energy, Inc. (NYSE: NEE) are collaborating to explore the potential development of power generation assets near Comstock's growing Western Haynesville area. The joint project will look to integrate Comstock's growing natural gas supply and its natural gas gathering and processing and pipeline assets in its Western Haynesville area to support reliable energy solutions to potential data center customers.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on July 31, 2025, to discuss the second quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register-conf.media-server.com/register/BI4a6aefc65c284c6190c230cdebdf9088 .
Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/537xytab .

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on July 31, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/537xytab .

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov.

Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the NYSE and the NYSE Texas under the symbol CRK.

COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

Three Months Ended
June 30, 		Six Months Ended
June 30,
2025 2024 2025 2024
Revenues:
Natural gas sales $ 339,225 $ 216,527 $ 751,511 $ 503,610
Oil sales 741 1,074 1,443 1,950
Total natural gas and oil sales 339,966 217,601 752,954 505,560
Gas services 130,296 29,229 230,162 77,042
Total revenues 470,262 246,830 983,116 582,602
Operating expenses:
Production and ad valorem taxes 10,555 19,244 21,734 37,152
Gathering and transportation 41,759 49,361 84,376 96,460
Lease operating 31,109 34,805 66,109 69,877
Exploration — — 2,150 —
Depreciation, depletion and amortization 158,379 194,242 326,270 384,931
Gas services 126,714 31,494 243,483 80,174
General and administrative 12,300 10,177 23,380 19,348
Total operating expenses 380,816 339,323 767,502 687,942
Operating income (loss) 89,446 (92,493 ) 215,614 (105,340 )
Other income (expenses):
Gain (loss) from derivative financial instruments 235,847 (25,252 ) (94,492 ) 14,055
Other income 2,100 322 2,439 653
Interest expense (55,178 ) (51,932 ) (110,015 ) (101,489 )
Total other income (expenses) 182,769 (76,862 ) (202,068 ) (86,781 )
Income (loss) before income taxes 272,215 (169,355 ) 13,546 (192,121 )
(Provision for) benefit from income taxes (141,487 ) 46,106 1,789 54,398
Net income (loss) 130,728 (123,249 ) 15,335 (137,723 )
Net income attributable to noncontrolling interest (5,886 ) (3,061 ) (11,771 ) (4,908 )
Net income (loss) available to the Company $ 124,842 $ (126,310 ) $ 3,564 $ (142,631 )
Net income (loss) per share
Basic $ 0.45 $ (0.43 ) $ 0.05 $ (0.49 )
Diluted $ 0.44 $ (0.43 ) $ 0.05 $ (0.49 )
Weighted average shares outstanding:
Basic 290,604 289,670 290,455 283,816
Diluted 294,247 289,670 294,026 283,816

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)

Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Natural gas production (MMcf) 112,164 130,861 227,193 270,304
Oil production (Mbbls) 13 15 23 27
Total production (MMcfe) 112,238 130,949 227,329 270,464
Natural gas sales $ 339,225 $ 216,527 $ 751,511 $ 503,610
Natural gas hedging settlements (1) 4,286 60,552 (3,673 ) 108,547
Total natural gas including hedging 343,511 277,079 747,838 612,157
Oil sales 741 1,074 1,443 1,950
Total natural gas and oil sales including hedging $ 344,252 $ 278,153 $ 749,281 $ 614,107
Average natural gas price (per Mcf) $ 3.02 $ 1.65 $ 3.31 $ 1.86
Average natural gas price including hedging (per Mcf) $ 3.06 $ 2.12 $ 3.29 $ 2.26
Average oil price (per barrel) $ 57.00 $ 71.60 $ 62.74 $ 72.22
Average price (per Mcfe) $ 3.03 $ 1.66 $ 3.31 $ 1.87
Average price including hedging (per Mcfe) $ 3.07 $ 2.12 $ 3.30 $ 2.27
Production and ad valorem taxes $ 10,555 $ 19,244 $ 21,734 $ 37,152
Gathering and transportation 41,759 49,361 84,376 96,460
Lease operating 31,109 34,805 66,109 69,877
Cash general and administrative (2) 6,771 6,095 13,411 11,850
Total production costs $ 90,194 $ 109,505 $ 185,630 $ 215,339
Production and ad valorem taxes (per Mcfe) $ 0.09 $ 0.14 $ 0.10 $ 0.13
Gathering and transportation (per Mcfe) 0.37 0.38 0.37 0.36
Lease operating (per Mcfe) 0.28 0.27 0.29 0.26
Cash general and administrative (per Mcfe) 0.06 0.05 0.06 0.04
Total production costs (per Mcfe) $ 0.80 $ 0.84 $ 0.82 $ 0.79
Unhedged operating margin 73 % 50 % 75 % 57 %
Hedged operating margin 74 % 61 % 75 % 65 %
Gas services revenue $ 130,296 $ 29,229 $ 230,162 $ 77,042
Gas services expenses 126,714 31,494 243,483 80,174
Gas services margin $ 3,582 $ (2,265 ) $ (13,321 ) $ (3,132 )
Natural Gas and Oil Capital Expenditures:
Unproved property acquisitions $ 9,932 $ 9,694 $ 19,616 $ 79,138
Total natural gas and oil properties acquisitions $ 9,932 $ 9,694 $ 19,616 $ 79,138
Exploration and Development:
Development leasehold $ 5,295 $ 2,592 $ 8,851 $ 6,530
Exploratory drilling and completion 130,997 52,392 231,104 158,848
Development drilling and completion 123,991 151,350 269,569 297,143
Other development costs 7,919 14,685 8,434 14,722
Total exploration and development capital expenditures $ 268,202 $ 221,019 $ 517,958 $ 477,243

(1)   Included in gain (loss) from derivative financial instruments in operating results.

(2)   Excludes stock-based compensation.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

Three Months Ended
June 30, 		Six Months Ended
June 30,
2025 2024 2025 2024
ADJUSTED NET INCOME (LOSS):
Net income (loss) $ 130,728 $ (123,249 ) $ 15,335 $ (137,723 )
Unrealized (gain) loss from derivative financial instruments (231,561 ) 85,804 90,819 94,492
Exploration expense — — 2,150 —
Adjustment to income taxes 140,873 (20,769 ) (14,419 ) (23,521 )
Adjusted net income (loss) (1) $ 40,040 $ (58,214 ) $ 93,885 $ (66,752 )
Adjusted net income (loss) per share (2) $ 0.13 $ (0.20 ) $ 0.32 $ (0.24 )
Diluted shares outstanding 294,247 289,670 294,026 283,816
ADJUSTED EBITDAX:
Net income (loss) $ 130,728 $ (123,249 ) $ 15,335 $ (137,723 )
Interest expense 55,178 51,932 110,015 101,489
Income taxes 141,487 (46,106 ) (1,789 ) (54,398 )
Depreciation, depletion, and amortization 158,379 194,242 326,270 384,931
Exploration — — 2,150 —
Unrealized (gain) loss from derivative financial instruments (231,561 ) 85,804 90,819 94,492
Stock-based compensation 5,529 4,082 9,971 7,497
Total Adjusted EBITDAX (3) $ 259,740 $ 166,705 $ 552,771 $ 396,288

(1)   Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items.

(2)   Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method.

(3)   Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands)

Three Months Ended
June 30, 		Six Months Ended
June 30,
2025 2024 2025 2024
OPERATING CASH FLOW (1) :
Net income (loss) $ 130,728 $ (123,249 ) $ 15,335 $ (137,723 )
Reconciling items:
Unrealized (gain) loss from derivative financial instruments (231,561 ) 85,804 90,819 94,492
Deferred income taxes 143,586 (46,144 ) 310 (54,431 )
Depreciation, depletion and amortization 158,379 194,242 326,270 384,931
Amortization of debt discount and issuance costs 2,975 3,399 5,919 5,383
Stock-based compensation 5,529 4,082 9,971 7,497
Operating cash flow $ 209,636 $ 118,134 $ 448,624 $ 300,149
(Increase) decrease in accounts receivable 34,978 (23,187 ) 1,318 76,231
(Increase) decrease in other current assets 25,322 (730 ) 25,881 4,846
Increase (decrease) in accounts payable and accrued expenses 77,628 (10,642 ) 46,487 (126,112 )
Net cash provided by operating activities $ 347,564 $ 83,575 $ 522,310 $ 255,114


Three Months Ended
June 30, 		Six Months Ended
June 30,
2025 2024 2025 2024
FREE CASH FLOW (DEFICIT) (2) :
Operating cash flow $ 209,636 $ 118,134 $ 448,624 $ 300,149
Less:
Exploration and development capital expenditures (268,202 ) (221,019 ) (517,958 ) (477,243 )
Midstream capital expenditures (54,272 ) (11,190 ) (102,940 ) (16,488 )
Other capital reimbursements (expenditures) 848 (942 ) 762 (971 )
Contributions from midstream partner 33,000 11,000 92,500 17,000
Free cash deficit from operations $ (78,990 ) $ (104,017 ) $ (79,012 ) $ (177,553 )
Acquisitions (9,932 ) (9,694 ) (19,616 ) (79,138 )
Free cash deficit after acquisitions $ (88,922 ) $ (113,711 ) $ (98,628 ) $ (256,691 )

(1)   Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.

(2)   Free cash deficit from operations and free cash deficit after acquisitions are presented in the earnings release because management believes them to be useful indicators of the Company's ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, contributions from its midstream partner, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties.

COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

June 30,
2025 		December 31,
2024
ASSETS
Cash and cash equivalents $ 25,859 $ 6,799
Accounts receivable 173,528 174,846
Derivative financial instruments 136 4,865
Other current assets 69,456 97,524
Total current assets 268,979 284,034
Property and equipment, net 6,002,010 5,688,389
Goodwill 335,897 335,897
Operating lease right-of-use assets 87,838 73,777
Derivative financial instruments 139 —
$ 6,694,863 $ 6,382,097
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 460,062 $ 421,814
Accrued costs 151,798 146,173
Operating leases 48,378 35,927
Derivative financial instruments 87,909 8,940
Total current liabilities 748,147 612,854
Long-term debt 3,018,009 2,952,090
Deferred income taxes 345,426 345,116
Derivative financial instruments 74,017 66,757
Long-term operating leases 39,389 37,740
Asset retirement obligation 35,008 33,996
Total liabilities 4,259,996 4,048,553
Stockholders' Equity:
Common stock 146,535 146,130
Additional paid-in capital 1,364,857 1,366,274
Accumulated earnings 732,183 728,619
Total stockholders' equity attributable to Comstock 2,243,575 2,241,023
Noncontrolling interest 191,292 92,521
Total stockholders' equity 2,434,867 2,333,544
$ 6,694,863 $ 6,382,097